Friday marked pivot tops for the Nasdaq and S&P 500. Lower lows on the daily chart today signal shorting. It’s just a gut feeling, but I think this sell signal is going to fail. The close near the low of the day almost felt orchestrated. Maybe I’m thinking too much, but the sell signal seems too easy. I don’t want to be right. I just want to make money.
ICE, JASO, DRYS, and NYX were some of the harder hit stocks on my screen. If they hold up after the first half hour tomorrow, I’ll be trading them as failed sell signals, and looking to the long side. Lose the first half hour low, and I’ll have to reeavaluate my current bullish bias. All four of those stocks are near a major moving average, which could help spark a reversal to the upside.
In relative strength land, CROX held up nicely today. I bought the stock over 41, using the breakout on the 60-minute chart, and buy signal on the 15-minute chart. A month after diving from 70 to 40, CROX is trading stronger with higher lows, and this break from a base.
GS tapped it’s 50 day moving average, but held strong most of the day. SPWR and WBD also held up. Theyll be on my watchlist in the coming days. Relative strength on a down day is bullish.
